(Rewrites, adds background and share price information.)

By Ian Walker

LONDON--Shares of Jelf Group PLC (JLF.LN) are trading 19% higher in early trade Wednesday, its biggest one-day rise in more than seven years, after the insurance broker and financial consultancy said it is in offer talks with Marsh Ltd. about a possible takeover of Jelf.

The U.K. firm didn't disclose any further details about the talks, or give any indication of price although it did caution that there is no certainty any offer will be made or what terms will be offered.

Shares at 0815 GMT are 40 pence, or 19% higher, at 247 pence, giving the company a market capitalization of 273 million pounds ($426.7 million). The last time they rose as much in one day was on July 30, 2008 when they climbed 18.05%, according to FactSet. Shares are currently trading 98% higher over the past 12 months.

Marsh Ltd. is a global insurance broking and risk management firm and wholly owned subsidiary of Marsh & McLennan Companies (MMC). Jelf provides advice to both businesses and individuals on matters relating to insurance, healthcare, employee benefits and financial planning.

In its most recent earnings reported in May, Jelf reported a 20% rise in pretax profit for the six months ended March 31 to GBP2.76 million, on revenue of GBP43.67 million and declared its first interim dividend. Prior to this the company only paid a final dividend at the time of its full-year accounts.

At the time of the half-year earnings Chief Executive Officer Alex Alway said he expected the company to continue outperforming in the second half of the year.

For the year ended Sept. 30, 2014 the company made a pretax profit of GBP7.43 million on revenue of GBP82.59 million.

Earlier this month Jelf bought Libra Insurance Services Ltd., a general insurance broker based in Hertfordshire, U.K., as part of its strategy to grow through organic initiatives and selected acquisitions.

The U.K. Takeover Panel has set a deadline for 1600 GMT on Sept. 16 for Marsh to either make an offer or withdraw.

Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

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(END) Dow Jones Newswires

August 19, 2015 05:22 ET (09:22 GMT)

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